Revolutionizing HR Tech with a Human-Centric Approach: The Case of HR-ON

The RenDanHeYi model, developed by Haier Group CEO Zhang Ruimin in 2005, is revolutionary management philosophy aimed at transforming traditional hierarchical corporate structures into highly adaptive, customer-centric ecosystems. Rooted in the belief that employees (Ren) and their entrepreneurial capabilities should align with customer needs (Dan) to create value, the model emphasizes individual accountability and dynamic organizational roles (HeYi). By dismantling conventional silos, the RenDanHeYi model fosters a network of autonomous micro-enterprises within the larger corporate entity, transforming the organization into a nimble startup factory.

To develop and share the idea of Zero Distance and its broader management philosophy of RenDanHeYi, Haier hosts an annual forum to celebrate the world's most progressive organizations. This September marks the 8th edition of the forum, taking place in Haier’s hometown, Qingdao, on September 20. Working with the Business Ecosystem Alliance and the Management Lab, the Haier Model Institute will release the inaugural listing of the progressive companies which are putting Zero Distance and related ideas into practice.

These organizations are characterized by:

• Zero Distance to customer | Decision what to build is based on insights from the marketplace

• Autonomy | Small teams with full decision-making autonomy enable speed in execution

• Shared Rewards | Everyone in the micro-enterprise participates in its financial success

For the 2024 inaugural ZeroDX awards, Haier approached us to list 50 self-managed organizations that showcase the principles of RenDanHeYi in how they organise their work. HR-ON is one of the 50 organisations we listed this year.

Introducing HR-ON

HR-ON, established in 2012, is a Danish IT company specializing in Software as a Service (SaaS) solutions for human resources management. The company was founded by Ali E. Cevik, who sought to create a platform that puts people before technology. HR-ON operates with around 50 employees and is dedicated to developing user-friendly HR software that simplifies recruitment, employee management, and overall HR operations. The company’s mission is to enhance organizational efficiency while fostering a work environment that prioritizes employee well-being, making HR-ON a standout in the HR tech industry.

Their approach to organizational design is called “value based self-management”. It stems from their “Employee Manifesto”, which is a dynamic document prepared by all employees. It states their values, vision and mission. In this way, the “Employee Manifesto” is the leading star, the point of reference when any person or team is in doubt or just wants to verify that their approach/decision is in line with the overall philosophy of the company. Some of the main values which the company relies on are trust instead of control, results instead of time and meaning instead of duty. The Employee Manifesto is revised continuously by all staff and available publicly here: https://hr-on.com/employee-manifesto/.

HR-ON is a prime example of RenDanHeYi in the software product development space. They closely align with all principles - from decentralization and zero distance to customers, via autonomy in decision-making to shared rewards. Read on to learn more.

Decentralized Organizational Structure

HR-ON’s organizational structure is built on decentralization and self-management, moving away from traditional hierarchical models. The company is divided into various functional teams such as development, support, sales, and marketing, each responsible for managing its own operations. Rather than having a single leader dictate the course, HR-ON’s teams operate autonomously, with coordinators facilitating communication and ensuring alignment with the company’s values and goals. These coordinators are not traditional managers but are chosen based on their willingness and ability to support their teams.

The decentralization at HR-ON extends to decision-making processes, where employees are empowered to take ownership of their work and contribute to the company’s direction. Ali Cevik, the CEO, plays a supportive role rather than a directive one, focusing on removing obstacles and providing the resources teams need to thrive. This approach fosters a culture of trust and accountability, where authority is linked to expertise and the ability to lead by example rather than formal titles.

Customer Centricity through Decentralization

HR-ON’s decentralized model significantly enhances its customer-centric approach. With teams having the autonomy to respond to customer needs directly, HR-ON ensures that client feedback is quickly integrated into product development and service improvements. The flexibility within teams allows for rapid adjustments and personalized customer service, as employees are not bogged down by rigid protocols or approval hierarchies. This responsiveness is crucial in the competitive SaaS industry, where customer expectations are constantly evolving.

The company’s structure allows for close collaboration between sales, support, and development teams, ensuring that customer concerns are addressed holistically. For example, sales representatives often bring developers or support staff into client meetings to provide technical insights or address specific issues, creating a seamless experience for the customer. This integrated approach not only improves customer satisfaction but also drives continuous improvement in HR-ON’s offerings.

Company Culture

HR-ON’s company culture is rooted in principles of trust, flexibility, and transparency. Employees enjoy the freedom to decide on the working time and hours, amount of vacation/absence, maternity or paternity leave etc. without any limitations or impact on their payment/salaries. At the core is a commitment to create space for diverse needs, since all people have different needs in the different stages of their life. This approach has so far never resulted in anybody taking advantage of the freedom. And it has not hindered the company results. On the contrary, HR-ON has been awarded the Børsen Gazelle price the last 6 years in a row, a price which is given to the fastest growing companies in Denmark.

The company supports this flexibility with a strong communication framework, using tools like Slack and ClickUp to keep everyone connected and informed. Regular team meetings ensure that despite the physical distance, all employees remain aligned with the company’s objectives.

To maintain a high level of employee well-being, HR-ON has implemented a unique system to monitor and support its workforce. Employees participate in daily pulse surveys through an app, allowing them to share how they are feeling on a simple scale. This is supplemented by more comprehensive well-being surveys conducted biannually. The data collected is reviewed by the People and Culture team, which is composed of representatives from all departments. This team is tasked with organizing social events, team-building activities, and other initiatives aimed at fostering a supportive work environment.

In terms of remuneration, HR-ON offers a moderate salary structure complemented by a warrant program launched in 2021. This program allows employees to share in the financial success of the company through stock options that can be converted into cash during an exit or merger. The program is inclusive, with all permanent employees participating equally, reflecting the company’s commitment to shared success. This approach not only rewards employees for their contributions but also aligns their interests with the long-term goals of the company.

Conclusion

HR-ON’s innovative practices in organizational structure, customer service, and employee welfare demonstrate the potential of a human-centric approach in the tech industry. By prioritizing flexibility, decentralization, and transparency, HR-ON has created a work environment that empowers employees and delivers exceptional value to customers, positioning itself as a leader in the HR tech space. These results are another testament to the principles at the core of RenDanHeyYi - zero distance to customer and employee, autonomy and shared rewards.